Sensex, Nifty hit new highs; PSBs, Adani, Mazagon, HAL, BEL, Dixon & PG Electroplast top expert's picks

Indian equity benchmarks scaled fresh peaks on Thursday as optimism around an imminent India–US trade deal and firm global cues fuelled strong buying across sectors. At the close, the 30-share BSE Sensex pack jumped 446.21 points or 0.52 per cent to end at 85,632.68, extending its two-session gains to 959 points. The broader Nifty50 advanced 139.50 points or 0.54 per cent to settle at 26,192.15. During the session, Sensex hit a 52-week high of 85,801.70, while the Nifty touched a fresh one-year peak of 26,246.65.

Market expert Tapan Doshi said a series of supportive triggers are boosting sentiment, keeping benchmark indices on a steady upward trajectory. "The possibility of an India–US trade deal being finalised within a month has emerged as a major boost for the markets," he told Business Today.

He added that while the recent corporate earnings were mixed, the October–December quarter is expected to deliver stronger results. With the festival season demand set to reflect in results from early January, Doshi anticipates earnings upgrades that could further support valuations.

The expert advised investors to continue accumulating stocks on market dips, particularly in segments linked to domestic demand. Export-oriented sectors, he said, may see a clearer direction only after the trade agreement progresses.

Doshi remains overweight on banks and financial services, despite their recent all-time highs. He expects future interest rate cuts and sustained double-digit credit growth to drive momentum. Within the sector, he prefers public sector banks (PSBs) over private lenders, citing controlled NPAs and credit uptick. Stocks such as State Bank of India (SBI), Bank of Baroda (BoB) and Punjab National Bank (PNB) feature among his top picks.

In non-banking finance, Doshi is positive on housing finance and consumer lending players, noting stable margins and healthy demand. He highlighted firms such as Muthoot Finance and Bajaj Finance as examples of strong performers.

The expert is also upbeat on the Adani Group, stating that most issues involving the conglomerate have been resolved and that expansion plans are progressing. He said Adani Ports and Adani Power appear well-positioned for margin improvement.

In the defence sector, Doshi pointed to rising capacity and higher utilisation levels. He expects companies with strong multi-year order books -- such as Mazagon Dock Shipbuilders, Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd (BEL) -- to benefit over the next five to ten years.

He further sees opportunities in the electronics manufacturing services (EMS) segment, calling Dixon Technologies (India) Ltd attractive at current levels, while stocks like PG Electroplast Ltd have corrected significantly and could warrant consideration.